The UCC Law



Law of Sale and Uniform Commercial Code

Introduction

The uniform commercial code (UCC) is the set of governing laws pertaining to commercial transactions that includes the sale of goods and the secured transaction. The UCC law was introduced in 1952 and now it has been adopted actively by all fifty states of United States of America. The UCC comes under one of the uniform codes which are made uniform throughout the United States in conjunction with the efforts to synchronize the law of sales and similar commercial transactions within all of the fifty states (The American Law Institute, 2007). The purpose behind harmonizing the state laws is due to the prevalence of commercial transactions as the companies go beyond the single state to carry out their business operations in different states as well. The uniform commercial code attained the goal of uniformity and hence allowed the states to meet local conditions. The uniform commercial code has nine separate articles and each one of them deals with the distinctive aspects that include of banking and loans, sales, leases, bills of lading, credit, negotiable instruments and so on.

The study intends to extenuate the uniform commercial code and how it governs the sale of good. It also aims to enunciate the applicability of UCC sections pertaining to Zabriskie Chevrolet Inc. v. Smith case. Moreover, the study will also describe the relation of UCC with lemon laws.

Discussion

The discussion section intends to discuss the uniform commercial code in the light of sale of goods. The UCC is a code that is a collection of laws that encompass numerous laws pertaining to sales, commercial transactions, banking, leases, and general provisions. However, the uniform commercial code concerns copious commercial issues related to sales of goods, banking and security interests. Although it is not applicable in some circumstances such as in case of sale of real estate, contracts involving the significant labor, employment contracts, service agreements and domestic relation laws. The UCC involves the nine articles that include the laws related to each commercial issue.

Article 1; General Provisions: it contains the general application of uniform commercial codes.

Article 2; Sales: it includes all of the matters relevant to the sales of goods.

Article 2.A; Leases: it contains the issues related to lease of goods.

Article 3; Commercial Paper: this article covers the information about the negotiable instruments that contain the bank checks etc.

Article 4; Bank Deposits and Collections: it includes the information of bank checks, credits and deposits.

Article 4.A; Funds Transfer: it contains the information and everything about the contemporary electronic transferring of funds.

Article 5; Letters of Credit: this article covers the information pertaining to letters of credit issued by banks.

Article 6; Bulk Transfer: it concerns about the transfer of bulk business inventory.

Article 7; Warehouse Receipts, Bills of Lading and Other Documents of Title: it contains the information about all of the mentioned documents and their applicability in the bulk wholesale transactions and the issues related to loss of goods.

Article 8; Investment Securities: it contains the concerns of securities ...